IPG Reports ’Strong’ Q1 Results
OXFORD, Mass., May 8, 2007 -- Fiber laser maker IPG Photonics Corp. reported its first-quarter results today and said its revenue increased by 28 percent, to $41.8 million, from $32.7 million for the first quarter of 2006, mostly due to sales for materials processing applications, which increased by 53 percent, to $33.2 million.
Compared to the same period in 2006, its said, its operating income increased 48 percent to $11.1 million from $7.5 million, net income increased 113 percent to $6.6 million from $3.1 million, and earnings per diluted share increased 114 percent to $0.15 from $0.07.
"Operating expenses increased by $3.3 million to $8.3 million, or 20 percent, of revenue as a result of the growth in revenues and expenses associated with being a public company," the company said in a statement.
Cash and cash equivalents were $49.1 million as of March 31, a decrease of $26.5 million from Dec. 31, mainly as a result of the repayment of $18.2 million of term debt and capital expenditures of $7.3 million.
Valentin Gapontsev, CEO, said, “IPG has continued to solidly execute on its business plan in the first quarter of 2007 as we reported another quarter of strong top- and bottom-line performance. Our first-quarter growth was driven by increased sales of fiber lasers into the materials processing market, particularly our high-power kilowatt lasers in automotive cutting and welding, as well as our pulsed lasers for marking applications.
“Leverage in our operating model drove substantially improved financial results, particularly a 48-percent increase in operating income," Gapontsev added. “We continue to make important progress on our growth strategy, including displacing existing laser technologies, as our fiber laser products gain traction with a growing number of customers.”
For the second quarter of 2007, IPG Photonics said it expects revenues in the range of $42 million to $45 million and earnings per diluted share in the range of $0.14 to $0.17 based on 45,602,000 common shares, which includes 42,909,000 basic common shares outstanding and 2,693,000 potentially dilutive options.
“We remain enthusiastic about our prospects for strong performance throughout 2007," Gapontsev said. "We are executing well on our strategy, and demand for our products remains robust.
For more information, visit: www.ipgphotonics.com